The state intends to attract private investors to lend to projects for the repair, modernization, reconstruction, and construction of strategic port infrastructure facilities in Ukraine with the possibility of compensation for the funds spent through port dues.
The relevant provisions are contained in the draft resolution of the Cabinet of Ministers “Some issues of compensation for investments made by business entities in strategic port infrastructure facilities that are state-owned”, the text of which is posted on the website of the Ministry of Community Development, Territories and Infrastructure (Ministry of Health) for discussion.
The document provides for the approval of the procedure and conditions for concluding agreements on the basis of which investments made by business entities in strategic port infrastructure facilities are compensated, as well as amendments to the Cabinet of Ministers Resolution No. 899 of October 3, 2012, according to which public sector entities may make expenditures on capital investments, in particular on port infrastructure facilities, in the absence of an approved financial plan.
It is noted that the amount of investment compensation should not exceed the amount of funds actually paid by the investor to finance the design or construction of port infrastructure facilities.
In addition, it is noted that the investor may be a legal entity or an individual entrepreneur. There may be several investors at one facility.
At the same time, the new procedure will not apply to legal relations involving business entities that make private investments in port infrastructure facilities on the basis of agreements concluded under public-private partnerships, including concession agreements and lease agreements for state property.
The Ministry of Reconstruction expects that the adoption of this resolution will help restore strategic port infrastructure facilities, accelerate the growth of maritime transport, improve the competitiveness of seaports and increase their investment attractiveness.
“Due to the military aggression of the Russian Federation against Ukraine, there is a problem of insufficient funding for the maritime industry, in particular due to imperfect fiscal policy, which leads to a lack of funds at the state-owned enterprise Ukrainian Sea Ports Authority (USPA),” the explanatory note to the draft resolution says.
It is noted that the USPA has entered into contracts for a number of construction projects, but “due to lack of funds and the state’s dividend policy, it is not possible to implement even part of these projects.”
At the same time, the USPA is facing an acute issue of the need to reconstruct and maintain port infrastructure, including berthing facilities. As of February 24, 2022, the state-owned enterprise had 265 berths (cargo, auxiliary, passenger) located in 13 seaports of Ukraine. Of this number, 20 are unsuitable for normal operation, 37 require significant investment in the next five years, and more than 50 operate with low economic efficiency – they need to be restored through overhaul or reconstruction.
In addition, it is indicated that, according to preliminary calculations, in the period before the full-scale invasion, the need for USPA to finance projects for the reconstruction, modernization and construction of berths alone (more than 48 projects, of which 36 are for reconstruction and modernization) was estimated at UAH 12 billion over four years.
The ports of the Greater Odesa Ports have received three more bulk carriers that have passed through the temporary corridor established by the Ukrainian Navy, said Andriy Klym, Head of the Sanctions and Freedom of Navigation Monitoring Group of the Black Sea Strategic Studies Institute.
According to him, the vessels in question are Peter S (Greek shipowner), Xin Shun (Chinese shipowner) and Bull (Singaporean shipowner).
According to MarineTraffic, the 71.6 thousand dwt Peter S was heading to the Chornomorsk port under the flag of Liberia, and the 75.8 thousand dwt Xin Shun was heading to the Pivdennyi port under the flag of Panama.
Falcona with a deadweight of 82 thousand tons, according to the resource, arrived at the port of Odesa under the flag of Liberia.
Earlier on Thursday, two bulk carriers left the ports of Greater Odesa with cargo: Beaver with a deadweight of 81.8 thousand tons under the flag of Liberia (shipowner: Marshall Islands) and Castor with 78.9 thousand tons under the flag of Liberia (shipowner: Liberia).
As reported, since September 16, 23 vessels with a total deadweight of 898.3 thousand tons have arrived at the ports of Greater Odesa via the new Ukrainian corridor, while 14 vessels with a total deadweight of 466.9 thousand tons have left.
On Friday 11 vessels with 313.5 thousand tons of agricultural products left the ports of “Big Odessa” after three days of bad weather, when there was no traffic of vessels, said the Ministry of Infrastructure of Ukraine.
“At once three bulk carriers are heading to African countries: the Lady Litel with 31 thousand tons of wheat for Libya, the East Wind 1 with 25 thousand tons for Tunisia, and the Lady Hatice with 11 thousand tons of food for Morocco,” the ministry noted on Facebook.
It also reported that the bulk carrier Antheia, chartered by the UN World Food Programme to deliver Ukrainian wheat to Afghanistan, moored in the port of Chornomorsk.
The agency said that in the ports involved in the “grain initiative”, there are 17 ships under processing, they are loaded with more than 519 thousand tons of Ukrainian agricultural products, and another five ships are moving in the “grain corridor” for the loading.
The Ministry of Infrastructure noted that 104 vessels are waiting for the inspection of the Joint Coordinating Centre in the Bosphorus, while there were 98 on January 10 and 95 on December 26.
The agency stressed that for continuous movement in the grain corridor should be held at least 12 inspections per day.
In total, according to the department, since August 1, 644 ships that exported 17.3 million tons of food have left the ports of Greater Odessa.
Ships flying the Turkish flag will be able to continue exporting grain from Ukrainian ports without any problems, despite the suspension of Russia’s participation in the Black Sea Grain Initiative, Turkish Defense Minister Hulusi Akar said.
“There are no problems with the exit of ships under the flag of Turkey. They will continue to leave Ukrainian ports,” the Turkish media quoted the minister as saying.
Akar also expressed hope that the parties will be able to agree on the implementation of the agreement on grain in full.
The topic of the grain deal, as reported, was discussed by phone on Monday and Tuesday by the foreign ministers and defense ministers of Russia and Turkey.
Another seven ships with 177,500 tonnes of foodstuffs left the Ukrainian ports of Odesa, Pivdenny and Chornomorsk on Tuesday for the countries of Africa, Asia and Europe, the Ministry of Infrastructure of Ukraine has reported.
“In particular, among the ships leaving the Ukrainian ports is the bulk carrier Sea Pearl J, which will deliver 30,000 tonnes of wheat to Tunisia,” the ministry said on its Facebook page.
Five ships were sent from the port of Chornomorsk: Hazar S, Sea Pearl J, Ince Evrenye, Milina, Magnum Power, while Lucky Trader and Erdek departed from Odesa and Pivdenny, respectively.
In general, since the launch of the first ship with Ukrainian food, 7 million tonnes of foodstuffs have been exported, and the number of ships with food sent to Asia, Europe and Africa has reached 316.
Ukrainian ports on Monday left seven ships with almost 56 thousand tons of food, having received permission from the joint coordination center (JCC).
“On October 10, seven ships left Ukrainian ports, they are transporting a total of 55,750 tons of grain and other agricultural products as part of the Black Sea Grain Initiative,” the SKC said in a statement.
Five dry cargo ships – Basel Athena (19 thousand tons of wheat), Taj (10.5 thousand tons of corn), Islander A (7.2 thousand tons of wheat), Blue Shark (3.4 thousand tons of soybeans) and Jaguar (2.5 thousand tons of food) sailed to Turkey.
In addition, the Mehmet Bey ship will deliver 7.6 thousand tons of soybeans to Egypt. The Ekmen Trans vessel left for Israel with 5.5 thousand tons of rapeseed meal.
The SKC specified that “the grain that arrived at the destination can be processed and then transported to other countries.”
“As of October 10, the total tonnage of grain and other agricultural products exported from three Ukrainian ports is 6,868,748 tons. In total, 629 ships have been allowed to move at the moment – 320 for arrival in Ukrainian ports and 309 for leaving them,” – emphasized in the message.
On July 22, in Istanbul, with the participation of the UN, Russia, Turkey and Ukraine, a document was signed on the creation of a corridor for the export of grain from three Ukrainian ports – Chornomorsk, Odessa and Pivdenny.
